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Japan International Cooperation Agency (JICA) has lost interest Delhi Metro after having funding phase I & II. It has told Delhi Metro Rail Corporation (DMRC) that it would not like to be part of project's phase III.
"We would like to focus on dedicated freight corridor projects," a JICA official said on the condition of anonymity without giving any details on why the agency is not considering phase III of metro.
DMRC proposes to add another 69 km to metro network in and around Delhi in its phase III. It requires about Rs 11,000 crore for the same. With such huge requirement of funds, it may look at public private partnership (PPP) projects in phase III as a fallback option.
A planning commission official confirmed the withdrawal of JICA. "Now with JICA being out, DMRC will have to look for funding other options. We have suggested that they go for PPP model on lines of Hyderabad metro," said plan panel official, who did not want to be named.
As per Yojana Bhavan, the company should select a private partner through competitive bidding and let the concessionaire operate a metro station for certain period as in the case of road projects. "DMRC has not gone for PPP so far. There is only one project that was given on EPC (engineering, procurement contract).
Considering its funding requirement, it should opt for PPP for future projects," the official said. DMRC spokesperson Anuj Dayal, when contacted, refused to comment. JICA (formerly known as JBIC -Japan Bank for International Cooperation) had sanctioned Rs 6,434.06 crore debt for DMRC's phase I project at a nominal rate of 1.30 2.30 per cent. The phase-I consists of 65 km. It was completed in 2002 at an estimated cost of 10,571 crore. JICA had financed 60 per cent of this project.
For phase II (124 km), the cost was estimated at Rs 20,000 crore. JICA has funded 49.19 per cent of this investment at 1.201.40 per cent. This phase all set to be completed next month before Commonwealth Games.
DMRC, a joint venture between central and Delhi governments has sent a detail project report (DPR) to the state urban development ministry. It is also exploring the options of taxfree bonds. "Nothing has been finalised yet. The decision has to come from the government," said a DMRC official.
parulchhaparia @mydigitalfc.com On the vails DMRC proposes to add another 69 km to metro network in and around Delhi in its phase III As per Yojana Bhavan, the company should select a private partner through competitive bidding Japan Bank had sanctioned Rs 6,434.06 crore debt for DMRC's phase I project For phase II, the cost was estimated at Rs 20,000 crore. JICA has funded 49.19 per cent of it
 Limited.JPG)
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